NASHVILLE, TN -- (Marketwired) -- 07/10/13 --
CCA (Corrections Corporation of America) (NYSE: CXW), America's largest owner of partnership correctional and detention facilities, announced today that it has renewed its contract with the California Department of Corrections and Rehabilitation (CDCR) for an additional three years.
The contract renewal, which is effective July 1, 2013, includes the following provisions:
1. Up to 8,244 beds are made available to CDCR for the next three years at the following three facilities which currently house approximately 7,450 California inmates:
- La Palma Correctional Center: 3,160 beds
- North Fork Correctional Facility: 2,400 beds
- Tallahatchie County Correctional Facility: 2,684 beds
2. Allows CCA and CDCR to transition California inmates currently housed at our 1,596-bed Red Rock Correctional Center to other CCA facilities as necessary, upon mutual agreement. Red Rock currently houses approximately 1,550 California inmates.
As previously disclosed, CCA is working with California to develop a transition plan to remove all of its inmates from our Red Rock Correctional Center before the end of the year, in order to make room for inmates under our new contract with the State of Arizona effective January 1, 2014. While the transition plan may result in the loss of some or all of the inmates currently housed at the Red Rock facility, the transition plan could include retention and transfer of inmates to other CCA facilities.
Damon Hininger, president and CEO, stated, "We appreciate the opportunity to continue our relationship with the state of California. This partnership exemplifies the flexibility that CCA is able to provide CDCR to safely and securely manage its populations."
CCA, a publicly traded real estate investment trust (REIT), is the nation's largest owner of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 66 facilities, including 51 facilities that we own or control, with a total design capacity of approximately 92,000 beds in 20 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment.
This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) general economic and market conditions, including the impact governmental budgets can have on our per diem rates, occupancy, and overall utilization; (ii) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv) changes in the privatization of the corrections and detention industry, the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (v) the outcome of California's realignment program and its utilization of out of state private correctional capacity; and (vi) increases in costs to construct or expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission.
CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release.
Source: Corrections Corporation of America